EMNRD seeks geothermal investment, state park support and wildfire grants as LFC and executive diverge on special appropriations

Austin Davidson, the LFC natural resources analyst, opened with a high‑level review showing significant cumulative growth in natural‑resource agency budgets over the past decade and previewed LFC recommendations for EMNRD. He said, “From FY15 to FY25, their cumulative budget has grown by 123.8 percent,” and he broke the growth down by agency.

Madam Secretary (EMNRD), who identified herself as being eight months on the job, emphasized both alignment with LFC recommendations and two critical differences in the executive budget: restoring operational funding for State Forestry Division programs and addressing an increase in state parks’ operating expenses because of a change in how reservation vendor revenue is handled.

Nut graf: EMNRD officials asked for targeted capital and special appropriations to accelerate geothermal development, expand wildfire preparedness grants, and restore operating funds for forestry and parks. Committee members asked whether fee increases and one‑time capital appropriations would be sufficient to address long‑standing state park maintenance needs.

Geothermal and energy planning

The department highlighted geothermal development as a priority and requested $20 million in special appropriations to expand mapping, feasibility work and early project grants and loans. The secretary said the state already received $5 million in FY25 and that the money helped catalyze private interest, including a “100 megawatt plant development in Hidalgo County.” The department emphasized geothermal’s high capacity factor (the secretary said “the capacity factor for geothermal is 90 percent compared to, like, 29 percent for solar”), and characterized the $20 million request as a way to attract private investment and support manufacturing and military base applications.

State parks and revenue handling

The secretary described a change in the reservation contract that, in past contracts, allowed the vendor to retain fees and remit a net amount to State Parks; the new arrangement requires parks to collect all revenue and invoice the vendor for services. She said that procedural change increases the division’s gross receipts and will raise operating expenses by about $1,000,000 for processing and vendor payments. The department currently reports roughly $6.2 million in annual park revenues and is seeking additional capital funding for parks: the LFC recommended $40 million in capital for statewide improvements while DFA proposed $20 million; the department supports the DFA capital number but said $40 million would be helpful. Officials noted large uses of federal ARPA funds already expended on park infrastructure, including “over $18,000,000 at the largest state park, Elephant Butte, to improve roads in Sierra County.”

Wildfire preparedness and Smokey Bear Museum

EMNRD requested $20 million for a Wildfire Prepared Fund pilot centered on Lincoln County to provide home‑hardening grants. The secretary said the request is contingent on passage of SB 33 and called the requested amount a pilot that would need to be scaled up statewide. The department also requested $5 million for infrastructure upgrades to the Smokey Bear Museum; the executive recommended the $5 million but LFC did not.

Other requests and process issues

The department asked that the committee reauthorize nonrecurring appropriations for forestry post‑fire mitigation in Ruidoso and for federal matching extensions for solar programs. Officials also asked the committee to oppose recent LFC rule changes that would limit agency category‑transfer authority and the 5 percent bar increase, arguing that those rules could hinder the department’s ability to manage rising operating costs (for example, the new reservation contract’s gross revenue handling).

Committee reaction and next steps

Senators asked whether fee increases will be sufficient for park repairs and whether the reservation vendor’s fee share is too large; one senator suggested exploring alternative payment platforms with lower transaction costs. Committee members also pressed for details on specific capital projects (Fenton Lake, parking and waterline repairs were discussed) and the schedule for implementing increased fees. The department said fee increases are expected to take effect shortly and that capital plans and site lists can be provided to the committee.

Ending: The hearing left several large one‑time requests — geothermal, wildfire preparedness and state park capital — for further review; lawmakers asked for project lists, contractor estimates and clearer budget language tying fee and contract changes to operations.